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The River Valley PGM deposit is 100% company owned, and is one of North America's most advanced primary PGM projects.
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In May 2012 we updated our NI 43-101 resource estimation Measured and Indicated mineral resources at a cut-off grade of 0.80 g/t PdEq to 91,339,500 tonnes grading 0.84 g/t Pd+Pt+Au, 0.06% copper, 0.02% nickel and 0.002% cobalt.
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Inferred mineral resources 35,911,000 Mt grading 0.53 g/t Pd+Pt+Au, 0.06% copper, 0.03% nickel and 0.002% cobalt.
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In July 2012 we engaged SGS Canada Inc. to undertake a metallurgical study, results expected in December 2012.
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Plan to carry out Market Research Study on River Valley concentrate by end of Q1 2013
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Commence Geotechnical and Hydrological Studies by end of Q2 2013
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Update and optimize Mineral Resource Estimation by end of Q4 2013
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The projects' contact zone is open and extends for over 9 km of prospective strike length and hosts the currently defined resource.
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Major shareholders: Anglo Platinum, Stillwater, Management, Pinetree and key European investors.
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Fall 2012 objective is to complete a $1.1M private placement, as announced in October 2012 [See Term Sheet]
RIVER VALLEY PROJECT
The River Valley Project is one of North America's most advanced primary PGM deposits. The project has excellent infrastructure support and is located 100 km from the city of Sudbury, Ontario, Canada's largest nickel-copper-PGM mining and metal recovery center.
The River Valley intrusion (RVI) is shallow-dipping, layered, and approximately 900 m thick. The dominant rock types are leucogabbronorite and leucogabbro with gabbros and anorthosites. Along the Grenville Front, the RVI is either in thrust contact with quartzite of the Huronian Mississagi Formation or is in contact with mafic and felsic metavolcanic rocks of the lower Huronian Supergroup where the nature of the contact is unknown.
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Between 1999 and 2008, Pacific North West Capital Corp as operator of the project, in conjunction with joint venture partner Anglo American Platinum Corporation Limited, carried out several phases of trenching, surface sampling and mapping, and completed 8 diamond-drilling programs. During this period of time $22 million in exploration programs were financed by Anglo Platinum and more than 110,000 metres were drilled.
After Anglo Platinum decided to drop all overseas exploration projects, Pacific North West Capital Corp. successfully negotiated the 100% acquisition of the River Valley PGM Project from Anglo Platinum in January 2011 and immediately commenced a $5 MM, exploration program for the project. During 2011/12 exploration seasons, PFN completed more than 15,500 m of drilling and more than 140 line km of 3D IP geophysics survey. |
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Figure 1- Location Map of River Valley Project | |
A new NI43-101 compliant mineral resource estimate was completed in May 2012 utilizing 96,480 metres of drilling in 462 diamond drill holes, including 13,140 metres in 46 holes drilled in the Dana North and Dana South Zones, during the 2011 drilling program.
May 2012 estimated Measured and Indicated mineral resources at a cut-off grade of 0.80 g/t PdEq have increased by over 400% from the previous mineral resource estimate (Filed on SEDAR, May 2006) to 91,339,500 tonnes grading 0.84 g/t Pd+Pt+Au, 0.06% copper, 0.02% nickel and 0.002% cobalt.
The compliant Inferred mineral resources have increased by >1,000% to 35,911,000 Mt grading 0.53 g/t Pd+Pt+Au, 0.06% copper, 0.03% nickel and 0.002% cobalt. Please review our website for the notes on 2011 Mineral Resource Estimate. Tables below summarize the 2012 Mineral Resource Estimate. For the notes on Mineral resources in these tables please visit our website (http://pfncapital.com/s/Home.asp)
Work to date at River Valley suggests that the best potential for economic accumulations of PGM - Cu - Ni sulphide mineralization is within the Breccia Zone. This zone includes the main mineralized zone. The main zone occurs within about 20 m of the intrusive contact with country rocks. This contact zone is open and extends for over 9 km of prospective strike length and hosts the currently defined resource.
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The main Zone of the breccia - hosted PGM mineralization averages 20 - 50 m in thickness, continues to depths of greater than 200 m, and is for the most part open along strike and down dip. In addition, the drilling demonstrates predictable grade to depth with significant high grade intersections (5 - 10 gpt 3E over 1 - 5 m & 3 - 5 gpt 3E over 5 - 10 m) enveloped by roader (commonly >20 m and sometimes >100 m) lower grade (1.0 - 1.5 gpt 3E) intersections.
The continuity of mineralization and the remarkable consistency in the geology and stratigraphy along strike and at depth, suggests that there is significant potential to increase resources on the property through further extensional drilling away from the currently defined mineralized zones. Deeper holes confirmed the presence of mineralization at depths greater than 350 m (down dip and down plunge). There is a general correlation between three dimensional induced - polarization (3D - IP) geophysical survey anomalies and PGM sulphide intersections.
The intersections for most of the holes correlate with relatively high chargeability, an indication of disseminated sulphides.
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Figure 2- Location of the mineralized zones in the Breccia Unit at the base of the
River Valley Intrusion, Sudbury area, Ontario | |
The mineralized zones are open to further expansion through continued exploration; as a result, during 2013, the company intends to continue exploration at River Valley in order to further expand the PGM resources and to discover new resources and delineate sufficient resources to establish a multi - million tonne open pit PGM mine.
In July 2012 we engaged SGS Canada Inc. to undertake a metallurgical study on the River Valley Project. Two 300m long holes were drilled in our Dana North and Dana South zones, resulting in 1,200kg of � NQ sized drill core material delivered to SGS.
SGS will perform grindability testing, ore beneficiation, floatation testing, and environmental testing, all slated for completion by the end of December 2012.
On the Exploration front, PFN plans to explore for new higher grade resources, drill the current PGM resource to expand the resources laterally and down-dip, and advance the current Inferred resource into Indicated.
As noted earlier, we are planning to complete this financing in order to continue hitting our development milestones. As you can see from the above project overview we have made substantial progress in 2012. We would welcome your direct inquiry by return email, so that we may set up a telephone conference to discuss the project and the financing in more detail.
Thanking you in advance for your interest.
Regards,
Harry Barr
Chairman & CEO
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